Brown Commercial Seaweed Market

According to Stratistics MRC, the Global Brown Commercial Seaweed Market is accounted for $17.68 billion in 2023 and is expected to reach $35.56 billion by 2030 growing at a CAGR of 10.5% during the forecast period. A major component of many industries, including food, cosmetics, and even pharmaceuticals, is brown commercial seaweed, or kelp. Brown commercial seaweed has a high nutritional profile and is a good source of important vitamins, minerals, and antioxidants. It is also utilized as a natural soil conditioner and fertilizer in agriculture, demonstrating its versatility in that regard. It is also a sustainable option for companies looking for environmentally friendly substitutes because of its abundance in marine environments, brown commercial seaweed continues to be essential in a variety of international markets, regardless of whether it is harvested for culinary uses, skincare advantages, or agriculture.

According to the International Seaweed Association, brown commercial seaweed is a vital resource with multifaceted applications across various industries, including food, cosmetics, pharmaceuticals, and agriculture.

Market Dynamics: 

Driver: 

Raising awareness among consumers

The market for commercial brown seaweed has been driven primarily by consumers growing health consciousness. Because it contains a wealth of vital nutrients like iodine, calcium, vitamins, and antioxidants, brown seaweed is very popular among people who are concerned about their health. Its low calorie count and possible weight-management advantages have also added to its appeal. Brown seaweed-based products are in high demand as a result of consumers actively searching for natural, nutrient-dense food options. Furthermore, the increasing acceptance and adoption of seaweed in Western markets can be attributed to the popularity of Asian cuisines, which frequently include it in various dishes.

Restraint:

Environmental factors and seasonal variability

Brown seaweed growth and productivity are influenced by environmental factors and seasonal variations, which can affect product consistency and supply chain stability. The cultivation of seaweed is impacted by variables that can change suddenly, including sunlight, ocean currents, nutrient availability, and water temperature. Additionally, adverse weather conditions, pollution, and habitat degradation can negatively impact seaweed cultivation sites, resulting in reduced yields and disruptions in the supply. Market participant’s ability to grow the industry is limited by the need to deal with these environmental uncertainties and invest in risk management techniques to lessen their effects on supply and production.

Opportunity:

Innovation and product portfolio expansion

There are plenty of opportunities for product diversification and innovation across multiple industries in the brown commercial seaweed market. It is possible to find novel bioactive compounds and useful ingredients from brown seaweed with continued research and development, which could result in the creation of cutting-edge products with improved wellness and health benefits. Moreover, value-added products like encapsulated supplements, fortified foods, and customized skincare formulations can be made in response to changing consumer preferences and market trends thanks to developments in extraction and formulation technologies.

Threat:

Market volatility and price changes

Due to a number of factors, such as supply and demand dynamics, geopolitical tensions, and currency fluctuations, the brown commercial seaweed market is prone to market volatility and price fluctuations. Variations in seaweed supply, driven by seasonal variability and environmental factors, can affect product availability and market stability as the demand for products derived from seaweed expands globally. In addition, modifications in consumer inclinations, advancements in regulations, and rivalry can drive prices lower, impacting market participants' profitability. Furthermore, supply chain disruptions—like delays in transit or logistical difficulties—can intensify supply scarcity and market volatility, putting companies that depend on brown seaweed resources at risk.

Covid-19 Impact: 

The market for commercial brown seaweed has been affected by the COVID-19 pandemic in different ways. Disruptions in global supply chains and logistical challenges have affected the production and distribution of brown seaweed products, despite the fact that the increased consumer focus on health and immunity-boosting products has driven demand for seaweed-based supplements and functional foods. Lockdowns and restrictions on foreign trade have made it more difficult to harvest and process seaweed, which has resulted in short-term shortages and price swings in some markets. 

The Alginates segment is expected to be the largest during the forecast period

It is projected that the alginates segment will command the largest market share in the brown commercial seaweed industry. Because of their many uses as thickeners, stabilizers, and gelling agents, alginates are found in many different industries, such as food, medicine, and cosmetics. Because alginates can improve texture, they are used in the food industry in products like dairy substitutes, sauces, and desserts. Because of their mucoadhesive qualities and biocompatibility, alginates are used in pharmaceuticals as wound dressings, drug delivery systems, and impression materials. Moreover, alginates are also used as emulsifiers, moisturizers, and film formers in cosmetics and personal hygiene products.

The Liquid Seaweed Extract segment is expected to have the highest CAGR during the forecast period

In the brown commercial seaweed market, liquid seaweed extracts have the highest CAGR. Advanced processing techniques are used to extract concentrated bioactive compounds from brown seaweed, such as vitamins, minerals, amino acids, and plant hormones, which are the reason liquid seaweed extracts are valued. Because these extracts increase plant growth, improve nutrient uptake, and increase crop resilience to environmental stressors, they are widely used in agriculture as biostimulants, soil conditioners, and foliar fertilizers. Furthermore, because of their ability to nourish and rejuvenate skin, liquid seaweed extracts are becoming more and more popular in the personal care and cosmetics industries. They are also becoming more and more popular in the food and beverage industry due to their usefulness in improving the nutritional value and quality of products.

Region with largest share:

In the brown commercial seaweed market, Asia Pacific has the largest share. Due to their ideal coastal conditions, nations like China, Japan, South Korea, and Indonesia engage in extensive seaweed cultivation, which is the reason for their dominance. Using seaweed in food, medicine, cosmetics, and agriculture are just a few of the industries that have long used it in these countries. Additionally, the region's market leadership is further reinforced by the existence of well-established seaweed processing facilities, strong supply chains, and supportive government policies for seaweed cultivation and trade. 

Region with highest CAGR:

The brown commercial seaweed market is expected to grow at the highest CAGR in the North American region. A number of factors are driving this growth, including growing consumer awareness of the health benefits of consuming seaweed, an increase in demand for sustainable and natural ingredients in the food, cosmetics, and pharmaceutical industries, and the growing use of seaweed extracts in agriculture. Furthermore, technological developments in seaweed harvesting, processing, and cultivation, along with government policies that encourage innovation and seaweed farming, are propelling market expansion in the geographical region.

Key players in the market

Some of the key players in Brown Commercial Seaweed market include Nippon Suisan Kaisha, Ltd, Chase Organics GB Limited, FMC Corporation, E.I. Du Pont de Nemours and Company, Cargill Inc, Gelymar SA, Indigrow Ltd., Kelco Holdings Inc, Biostadt India Limited, Seasol International, Meiwa Corporation, Compo GmbH & Co. KG, Acadian Seaplants Limited, Seaweed Energy Solutions AS, Yantai Haiwei Group Co., Ltd, Edenbridge Group plc, Qingdao Bright Food Group Co., Ltd, BrandT Consolidated and Leili Group.

Key Developments:

In November 2023, FMC Corporation finalized an expected amendment to its existing revolving credit agreement.  The amendment raises the maximum leverage ratio covenant to 6.5 times immediately through June 30, 2024, after which the maximum leverage ratio will step down in increments to 3.75 times at September 30, 2025, and remain at that level thereafter. The interest coverage ratio covenant was similarly adjusted over this time period.

In June 2023, The trio of companies that emerged from the legacy of E. I. du Pont de Nemours and Company – DuPont, Chemours and Corteva – have reached a nearly $1.2 billion settlement agreement that will resolve cases filed regarding drinking water allegedly contaminated by firefighting foam with so-called forever chemicals. The agreement in principle, which was filed in the United States District Court for the District of South Carolina, seeks to comprehensively settle all drinking water claims of a defined class of public water systems that serve the vast majority of the U.S. 

In June 2023, Singapore-based Cargill Metals has entered into a multiyear agreement with Sweden-based industrial startup H2 Green Steel for the supply of green steel. The companies say the agreement aims to accelerate global ferrous supply chain decarbonization. According to Cargill, the agreement marks another major step for the company toward its vision to shape a responsible and sustainable ferrous supply chain that helps the world thrive.

Product Types Covered:
• Kelp
• Wakame
• Hijiki
• Arame
• Alginates
• Fucoidan
• Mannitol
• Laminarin
• Other Product Types 
 
Forms Covered:
• Raw/Whole Brown Seaweed
• Dried Seaweed
• Liquid Seaweed Extract
• Seaweed Bioactives
• Powder
• Flakes
• Other Forms 

End Users Covered:
• Food
• Animal Feed
• Pharmaceutical
• Cosmetics & Personal Care
• Biofuels
• Bioplastics
• Biochemicals
• Biorefineries
• Other End Users 

Regions Covered:
• North America
o US
o Canada
o Mexico
• Europe
o Germany
o UK
o Italy
o France
o Spain
o Rest of Europe
• Asia Pacific
o Japan        
o China        
o India        
o Australia  
o New Zealand
o South Korea
o Rest of Asia Pacific    
• South America
o Argentina
o Brazil
o Chile
o Rest of South America
• Middle East & Africa 
o Saudi Arabia
o UAE
o Qatar
o South Africa
o Rest of Middle East & Africa

What our report offers:
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2021, 2022, 2023, 2026, and 2030
- Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements

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